Aerospace Case Study
Market
Aerospace
Tools Used
Outsourcing
Situation
An aerospace component supplier was having cost problems on a key component. They had already tried unsuccessfully to outsource to a low cost country, but had experienced quality problems.
Analysis
These were technical components requiring high levels of certification and testing. The in-house capacity was insufficient to meet demand, so a local machining company was being used. But, the client had to supply a semi product, and perform final machining, as well as controlling secondary processes, testing, and documentation.
Solution
The solution was to find a competent supplier, working to the required aerospace standards and capable of delivering a finished product, with all necessary documentation.
The client was surprised by the capability of the chosen supplier. Especially as the supplier was using the same equipment as the client but more modern machines, and working to the latest required standards.
Outcomes
-50%
Component Costs
£74,000
Potential saving/annum